Webcentral sells hosting business for $165M, rebrands to 5G Networks

Joe Demase (5G Networks)

Credit: 5G Networks

Publicly listed Webcentral is set to sell off its web and email hosting businesses for a total transaction value of $165 million. 

The Melbourne-based IT provider has entered into binding agreements with a European investment group led by Oakley Capital to sell two-thirds of its Webcentral and Melbourne IT domain name registry, consumer hosting and email hosting services business by November. 

As a result of the sale, Webcentral will change its name to 5G Networks Limited and continue carrying on its remaining businesses as a telecommunications carrier and owner of infrastructure servicing enterprise and wholesale customers.  

According to a notice on the Australian Securities Exchange (ASX), Webcentral will use the $115-million sales cash to pursue “EBITDA- [earnings before interest, tax, depreciation and amortisation] accretive acquisitions” of complementary technology, cloud hosting and managed IT businesses and to “support future growth initiatives”. 

As part of the deal, Oakley Capital will agree to purchase $12 million worth of cloud services and managed support from Webcentral over five years, with a $4 million minimum spend in the first year. 


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